DoD awards $41.8M contract for aircraft parts to VSE Corporation, raising value concerns
Contract Overview
Contract Amount: $41,784,077 ($41.8M)
Contractor: VSE Corporation
Awarding Agency: Department of Defense
Start Date: 2008-08-15
End Date: 2010-08-14
Contract Duration: 729 days
Daily Burn Rate: $57.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: CR-2233
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $41.8 million to VSE CORPORATION for work described as: CR-2233 Key points: 1. Contract value of $41.8M for aircraft parts. 2. Awarded to VSE Corporation, a large business. 3. Full and open competition was utilized. 4. Potential concerns regarding value and taxpayer impact.
Value Assessment
Rating: questionable
The contract's total value is $41.8M. Without specific unit pricing or comparison data, it's difficult to definitively assess if this represents a fair market price. The 'Other Aircraft Parts' category is broad, making direct benchmarking challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the lack of detailed pricing information makes it hard to determine if the competition effectively drove down costs or secured the best value for the government.
Taxpayer Impact: The significant contract value of $41.8M necessitates careful scrutiny to ensure taxpayer funds are used efficiently and effectively, especially given the broad nature of the goods procured.
Public Impact
Ensures availability of critical aircraft parts for the Department of the Army. Supports VSE Corporation's operations and potentially its employees. The broad scope of 'other aircraft parts' may lead to less competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data for benchmarking.
- Broad 'Other Aircraft Parts' category may limit competition.
- Potential for cost overruns in Time and Materials contracts.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense needs.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for defense readiness, but can vary widely based on specific part needs and technological advancements. Benchmarking is difficult due to the diverse nature of parts.
Small Business Impact
The contract was awarded to VSE Corporation, a large business. There is no indication that small businesses were significantly involved as subcontractors or partners in this specific award.
Oversight & Accountability
The Department of Defense is responsible for overseeing this contract. Standard oversight mechanisms should be in place, but the Time and Materials pricing structure warrants close monitoring to prevent cost creep and ensure accountability for delivered value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed cost breakdown.
- Broad 'Other Aircraft Parts' category.
- Time and Materials contract type.
- No small business participation noted.
- Potential for price inflation due to broad scope.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.8 million to VSE CORPORATION. CR-2233
Who is the contractor on this award?
The obligated recipient is VSE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.8 million.
What is the period of performance?
Start: 2008-08-15. End: 2010-08-14.
What specific aircraft parts were procured under this contract, and what was the unit cost for each?
The provided data lacks specificity regarding the exact aircraft parts procured. Without a detailed list and corresponding unit costs, it is impossible to perform a meaningful value analysis or benchmark against similar items. This information is crucial for assessing whether the $41.8M expenditure represents a fair price for the goods received by the Department of the Army.
How did the full and open competition ensure the best possible price for these aircraft parts?
While full and open competition theoretically maximizes the pool of potential bidders, the effectiveness in driving down price depends on the specificity of the requirement and the clarity of the evaluation criteria. If the 'other aircraft parts' category was too broad, it might have deterred specialized suppliers or led bidders to inflate prices due to uncertainty, thus potentially limiting the price discovery benefits of competition.
What is the projected taxpayer impact given the Time and Materials contract type and the broad scope of parts?
Time and Materials contracts carry inherent risks of cost overruns, especially when the scope of work is not precisely defined, as suggested by the 'Other Aircraft Parts' category. The $41.8M total value, without detailed cost breakdowns or efficiency metrics, raises concerns about potential inefficiencies and the ultimate burden on taxpayers if costs escalate beyond initial projections.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2550 HUNTINGTON AVE, ALEXANDRIA, VA, 22303
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $56,523,074
Exercised Options: $41,784,077
Current Obligation: $41,784,077
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB012
IDV Type: IDC
Timeline
Start Date: 2008-08-15
Current End Date: 2010-08-14
Potential End Date: 2010-08-14 00:00:00
Last Modified: 2015-06-10
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